Mexico is Pretty Expensive..

Since I am going to Mexico City in about 2 weeks, I started looking at lodging and this is the cheapest one I found.

A bunk bed in a 16 bed dorm is $8.42? That seems pretty expensive doesn't it?
Thinking back at my travel in Thailand, I was able to get a whole cabin with a bathroom to myself in a beach resort for like 350baht. That's about $10.

Is Mexico really that expensive? I thought Mexico was supposed to be cheap.
I guess I will be bunking it up in a Hostel for most of next 3 months. LOL

I'm just hoping that once I hit the ground and hit up some hotels in person, I can find something cheap. You usually can work out a deal if you pay with cash and not go through a 3rd party website.